Solana‘s (SOL) price is on the verge of breaking out from a bullish reversal pattern that could send the altcoin into a recovery rally. This is possible only if broader market signals keep volatility low and investors respond positively to SOL’s current value.
Solana Price Outlook
Currently at $141.6, Solana’s price appears to be forming a falling wedge pattern that could soon result in a breakout. This chart pattern is also reflected in the Relative Strength Index (RSI), indicating the pace and change of price movements.
Along with the RSI, the Moving Average Convergence Divergence (MACD) also highlights a bullish trend in the price of the crypto asset and its potential reversal.
The value on the altcoin side currently appears low, which could mean a rally.
It has been revealed that revenues on the Solana side have significantly increased over the past few months, peaking last March.
While all this is happening, there has also been an increase in Solana’s market cap. SOL’s market cap has risen over 2% to more than $63.3 billion. Additionally, there has been a more than 10% decrease in 24-hour trading volume, dropping to $3.2 billion.
SOL Price Prediction
In the last three weeks, Solana’s price was seen trapped within a falling wedge formation. During this period, the bullish formation was confirmed once more during the last correction and recovery.
The falling wedge, associated with the convergence of downward trend lines, is a bullish chart formation indicating a potential reversal from a downtrend. This formation typically shows reduced selling pressure and that prices could break upward.
Considering the factors mentioned above and that SOL is trading just below the upper trend line of the wedge, it is likely that the altcoin will soon breakout. This could pave the way for Solana’s price to surpass the $142 resistance and move towards $150.
The mentioned psychological level has often appeared as resistance to investors. A breakout above this level had previously led to a rally. Investors analyzing future price movements might be expecting these levels again.
Moreover, if a decline continues and SOL falls to $134, the price could drop to as low as $120. Losing the mentioned $120 support could invalidate the bullish outlook and cause the price to fall to $110.
